Alphabet share asked: Google mother with a leap in profits-partnership with Palantir

For Alphabet, the first business quarter 2025 ended with a increase in results. The profit per share improved from $ 1.91 to $ 2.81, so that the Google mother was more expected than on the market ($ 2.01 per share). The net profit rose by 46 percent to $ 34.54 billion in the year.

Meanwhile, sales were $ 90.23 billion over the expert expectations, which had in advance to $ 89.23 billion. In the comparison period of the previous year, revenues of $ 80.47 billion were still in the books.

Advertising revenue increased

Google’s business with online advertising continues to grow-despite the competition of new AI rivals. In the past quarter, the advertising revenues rose by 8.5 percent of the year to just under $ 66.9 billion (58.9 billion euros). That was slightly higher than the expectations of the analysts.

Advertisements are Google’s money bringer

Advertising on Google continues to generate most of the proceeds from the parent company Alphabet. The development of the advertising business is observed very closely. One central question is whether the attempts by competitors, with the help of artificial intelligence, to display direct answers instead of links, leave a trail at Google’s search engine. Meanwhile, Google goes in this direction with overviews created by AI to the search queries. These “AI Overviews” currently came to 1.5 billion users per month, said CEO Sundar Pichai.

AI is also increasingly used in Google in another area. “Significantly more” than 30 percent of the software code – the millions of program lines behind the Google services – are now pre -formulated by artificial intelligence and adopted by humans, said Pichai. In the past, this was mainly manual for programmers.

Temu and Shein turned money tap

A second factor is the customs policy of US President Donald Trump this year. In May, the exception of import duties for package shipments worth less than $ 800 will be lifted in the United States. In this way, numerous deliveries from Chinese trading platforms such as Shein and Temu have been received in the United States. So far, they have switched a lot of advertising on Google and the Meta Platforms Facebook group – but have now stopped.

More profit thanks to Musks SpaceX?

Alphabet’s corporate sales were also $ 90.23 billion over the market expectations with an increase of twelve percent. Meanwhile, the profit rose by 46 percent to $ 34.54 billion in the year.

There was also an unusual factor for the strong profit plus: eight billion dollars contributed to the upgrading of the proportion of a company not listed on the stock exchange, it said. A name was not mentioned – but according to the Bloomberg financial service, this is Elon Musk’s space company SpaceX. The Internet group took part in a SpaceX financing round a decade ago.

Robotaxis in the fast lane

Meanwhile, Musk and Alphabet are rivals. In June, the Tesla boss wants to start with a robotaxi service in Austin Texas-and the Google sister company Waymo is the top dog in the shop. The self -driving cars now make more than 250,000 trips with paying passengers per week, said Pichai. Waymo only cracked the 200,000 trips at the end of February.

Since then, Waymo has started on the platform of the Driving Service mediator Uber in Austin and expanded San Francisco’s service into Silicon Valley. In the coming year, the driverless cars are scheduled to come onto the street in the capital Washington.

Competitors in the starting blocks

It was only on Thursday that Volkswagen (Volkswagen (VW) VZ) announced that it would bring self-driving cars on US streets from 2026 to self-driving cars. Musk said this week that Tesla would start in Austin with 10 to 20 cars of the compact SUV Model Y. However, he always claims that most of the new Tesla vehicles already have everything necessary to be autonomous.

That is why Musk speaks of millions of self -driving Teslas – and a market share of more than 90 percent in the robotaxi market. He also announced that autonomous driving should be activated for private Tesla owners in several US cities by the end of the year.

Doubts to Musks promise

Industry observers and competitors see Musks great promises skeptical. Because this only wants to rely on cameras and do without the more expensive laser radars used by Waymo. This technology gropes the surroundings and thus provides the software for autonomous driving significantly more and more reliable information than cameras.

However, Waymos vehicles are also considerably more expensive – and that also makes it more difficult for the Google sister company to do profitable business. The group does not provide any information about the robotaxi finances. But the entire alphabet division, in which, in addition to Waymo, other future bets are also summarized, an operational loss of almost $ 1.23 billion in sales at $ 450 million in the past quarter.

New partnership with Palantir

Alphabet also concluded a strategic partnership with the data analysis company Palantir, in which the Google Cloud services are to be integrated into the FEDSTART platform of Palantir. With this step, which contributes to advanced AI solutions for US authorities, Palantir improves its offer for government customers, so he could help Palantir to gain larger contracts and more of them.

In this way, it was said in a published blog post: “Palantir FedStart supports US authorities in compliance with regulations, scaling processes and access to innovative, corporate-critical solutions from leading independent software providers (ISVS), of which many are native on Google Cloud. The combination of first-class solutions, global infrastructure and security Palantir’s turnkey compliance will accelerate the innovation in the US authorities.

Alphabet shares continue relaxation according to numbers-AI fantasy lives

Thanks to good business figures, the Alphabet’s shares recovered again on Friday. The alphabet share showed $ 163.85 in Nasdaq trading, while the Palantir paper won 4.64 percent to $ 112.78.

Most recently, Alphabet recorded an increase of 3.3 percent, while the technology selection index NASDAQ 100 moderately higher and has largely caught up its losses since the USA since the USA.

Analysts reacted positively to Alphabet’s quarterly report – investors joined this. The internet giant continues to make the search engine calls consistently into money, wrote Douglas Grandh from JPMorgan. He also raised the development of AI innovations positively. At $ 195, his price target now leaves a little more room for relaxation than before.

The price goal of Brad Erickson from the Canadian Bank RBC continues at 200 dollars. The “fear of death” of the internet giant is enormously exaggerated, he wrote. The “scenario of the bears” does not disappear immediately after a quarter, but the development of Google Ai Overview – the AI ​​generated over the search results – are gradually displacing it. If the trend continues, the assessment of the shares is clearly too low.

The alphabet shares are still significantly in the minus over the year – it is currently 13 percent. At the record high of February at $ 207, the recovery potential is almost a quarter.

Redaktion finanzen.net / dpa-afx